JEDDAH: Saudi Arabia is set to become a major center for aircraft and power plant maintenance in the Middle East with the privatization of Saudi Arabian Airlines’ maintenance, repair and overhauling division (MRO), said Abdullah Al-Ajhar, the airline’s vice president for public relations.
He said the MRO division had gone a long way toward completing its privatization, adding that the strategic unit had been transformed into a company named Saudia Aerospace Engineering Industries (SAEI).
“We are now seeking a business partner for SAEI and have called for tenders from potential investors,” he said.
The successful bidder may be acting either alone or in a consortium with other investors, and will be invited to acquire 30 percent of SAEI’s capital and participate in managing the project, the airline said in an advertisement published in local newspapers.
SAEI has signed a long-term agreement with Saudia for the maintenance of its 125-aircraft fleet, which include 44 new aircraft such as Airbus 320s, A321s and A330s.
“The SAEI’s privatization has many dimensions, most importantly the strategic dimension of making Saudi Arabia the main center for commercial aircraft industry in the Middle East and Gulf regions and boosting the national economy,” Al-Ajhar said.
The Jeddah-based aircraft maintenance company has 5,523 employees with citizens accounting 88 percent of the total.
They are deployed in the airline’s 26 domestic and 30 international stations.
Ali bin Abdullah Milaat, CEO of SAEI, said his company had completed a number of projects for privatization including restructuring of its organizational, financial, operational, legal and manpower sectors, to meet market needs and confront challenges.
Saudia began its privatization process after the Supreme Economic Council took a decision five years ago allowing the airline to transform its strategic units into companies fully owned by the organization. Since then Saudia’s catering and cargo units have been privatized. The privatization of the core airline unit is expected to take place by the end of this year.
At present about 90 percent of the airline’s engine maintenance works are carried out at its power plant maintenance center in Jeddah.
Efforts are underway to establish a new state-of-the-art maintenance facility at King Abdulaziz International Airport in Jeddah.
Spreading over 150,000 square meters, the new facility will provide the company with the capability and capacity to offer power plant and APU maintenance services to other operators.
It will also have advanced equipment to test engines after maintenance.
Source : Arab News, Apr 27, 2011 00:17